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many more prominent democrats who have now decided enough. the ceo of spirit airlines with me on fox business an hour from now. >> glenn: america, welcome to the "glenn beck program." roll up your sleeves because we're going to do some work. americans have been saying for a long time, they just want to know the truth. they just want to know the truth, even if it's hard and they're willing to do it. well, okay, all right. today we tell you the truth, tell you the truth and all this week we show you how to slash the budget. but i worn you, i'm not going to have any friends left. there isn't anybody that won't be hacked off at me because when you see what we have to do, not to thrive, but to survive, americans might change their tune. we'll see how you will react. it's time to introduce you to the plan. c'mon, let's go!
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♪ ♪ >> glenn: hello, america. it's a working week. we're going to kind of keep you informed with what is going on in the news, but we have some amazing guests that are coming on this week that have been working with me on slashing the budget. it's an idea i want to lay out for you tonight and then please tell your friends, watch all this week. because somebody has to tell you the truth and show you what is coming in the future. right before i went on the air i looked at the drudge report. can you bring it up, tiffany, please? on the drudge report, i have not read the story, i haven't had time to read it. just going with a headline. this absolutely sounds like john holdron. obama science czar tells students we can't be number one indefinitely. the servers have crashed. you can't even get to that story. so i can't verify this, but drudge usually has it right.
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that sounds like john holdren, the science czar, who wants to redistribute all the wealth in america. not only between rich and poor here, but globally to take our wealth and give it to other countries. that is what is happening. now, everybody in the news business -- i mean i don't know why, honestly, america, i don't know why we're listening to these people. they missed the housing crisis that was coming. but they're now telling us that everything is fine. everyone in the white house is saying nothing to worry about. the worst is behind us. watch this. >> we can stand here today and say we prevented another depression. we broke the bat back of the recession. the economy that was shrinking by 6% a year ago is now growing by 6%. [ applause ]
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so the worst of the storm has passed. >> glenn: you're in the eye of the hurricane, my friend. obama's multi-trillion healthcare plan has passed. the job should start pouring in at any time. the "new york times" is also giddy about the economy. they ran this headline last week. this amazed me. "why so glum? numbers point to a recovery." really? has the "new york times" even looked around their own newsroom? it's practically empty. they just announced another 100 layoffs in the newsroom, which what? brings the total to what, "new york times"? probably explains why we're getting articles about how great the economy is, because i think jim from maintenance may have already taken over the business section at the "times." they also slashed salaries by 5%. why so glum, "new york times"? they have former "new york times" writer writers who are lg
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now on the street. you should read the story about this guy. it's amazing. he is a panhandler now and used to work for the "times." then the "new york times" built a giant skyscraper in new york. oh, this is going to work out well for you. yeah. two words, "new york times" -- "government takeover." every important economic indicator that is anybody is serious, not if you will question with boldness and you just want the truth, it will show you tough times are ahead. and it's becoming apparent that something more than just growth will be needed to restore america and stop the bleeding. this is what we are being told right now. transform. transform. we've got -- quoting the president -- fundamental transformation. into what? into what? when you voted for change, did anyone bother to ask change into what?
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transform into what? i'm not married to these guys because owe, they're on our money. i'm married to these guys because they were right. these guys were right. until somebody else comes up with a better plan, i say we stick with these guys. let me rephrase that. i say we stick with these guys until somebody tells us what we're transforming into. the leading economist now say the slump is going to be around for at least two more years. moody's, moody's says that we're talking a tight rope and that preserving debt affordability at levels consistent with triple-a ratings will invariably require fiscal adjustments of a magnitude that in some cases will test social cohesion. what does that mean? that is an incredible statement.
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they also added the severity of the crisis, the severity of the crisis will force governments to make painful choices that will expose weaknesses in society. basically what they're saying to the "new york times" why so glum, they're saying we will start to eat each other. there will be a little civil unrest. that's moody's. maybe we should get them a subscription to the "new york times." former congressional budget office head doug elmondorf said the nation's path is unsustainable. we know this. last week federal reserve chairman ben bernanke said this. watch. >> to avoid large and unsustainable budget deficits the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as social security and medicare, less spending on everything else from education to defense, or some combination
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of the above. if we as a nation demonstrate strong commitment to fiscal responsibility, in the longer run we'll have neither financial stability nor economic growth. >> glenn: got it? we aren't going to have any stability in anything. here is the chairman of the fed bracing americans that you're about to face drastic changes, or else. so what is congress doing about it? nothing. nothing. now normally congress doing nothing is a good thing. i celebrate. but they're screwing us up by not undoing the stuff they screwed us up with. they need to undo the damage they've inflicted on america. what are the leaders there? boy, i talk to paul ryan today. thank god for paul ryan. first time i met that guy. he makes some sense. most of the clowns in washington jam healthcare through. they hope for the best on the economy. i don't think most of them even understand the economy. they're actually set now to miss the april 15 deadline for completing next year's
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budget. they are not even considering a draft-up. they're skipping putting together a budget. they could put this together. they got this bill. they put this one together. yeah, they can do that. but not next year's budget. why? because they'll be able to avoid unpopular votes around election time. that is how stupid they think we are. hey, if we just don't do a tax hike around election time, we can do it letter and nobody will remember. america, this isn't about elections. i don't care who is in washington. do they have some sanity? it's time to make a choice. you have to choose. you have to choose who is right? are they right, is the worst behind us? is the "new york times" right? "why so glum?" are the leading economists, moody's, former c.b.o. direct fors, chairman of the fed, ben bernanke. they now tell us we're in trouble but weren't these the
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clowns that told us there is nothing on the horizon before? they're the same people that told us the housing mess, ah, we're fine. are they right? or is your gut right? look, if this is your house, if this is your budget, if this is the way you ran things in your house, you know, you'd know it's only a matter of time before they come and take everything you've got. something has to be done. even our own politicians will now admit that they're incapable of doing anything. here is congressman tom tiorello. watch this. >> the only way to keep them is to give them no choice, which is why if it's a balanced budget act of pay scale legislation, the only thing. tie our hands and we'll keep stealing. >> glenn: that's what they're doing. the last thing that happens in any country before it goes away, they steal, they loot the treasury. they're stealing.
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i want you to know this is not an american problem. that is what keeps us yelling about politics. we think this is an american problem. it's not. this is a global problem. what people won't tell you is it's all about to come undone. we can get healthy. we can. we just have to have common sense and a spine. you see, all countries, all over the globe have been stealing from the cookie jar. all countries decided that massive debt that you cannot pay back is just no big deal. we've all pursued bigger governments, socialization programs. we have all been shipping jobs to india and china and think we can always go this way. we can't. i told you months ago to watch europe. they're ahead of us. they are, they first tried all of the things we're embarking on and they are ahead of us in everything. george soros warned the world
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this weekend that europe could be on the verge of disintegrating if they don't muster up the political will to survive. his solution? more bail-outs, more spending. that's like telling a cancer patient smoke some more. a couple of months ago i told you that the far left and the far right, the fringes of europe will come out of the woodwork and they will gain power. well, greece today is now on the verge of collapse. billions in bail-outs have only delayed the inevitable. the unrest is growing and violence is growing as well. this far let militant guerilla groo groups have been launching bomb attacks. who is helping them and who is part of the riot? unions. over in greece -- see if this sounds familiar -- they promised their pensions, they promised too big of pensions and now the government can't
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pay for it. so they're stirring up the trouble. the far right is gaining power after elections in hungary. this is over the weekend. in south afriafrica, hundreds gave the nazi salute. how do we not remember? swastika flags at the funeral of a prominent white supremacist. how do we with forget this soon? the world is on the edge. i believe that there are people like george soros of the world that are pushing it farther off that edge. there are profound changes coming right around the corner. it's what we do about the changes. the world i fear is about to make the same mistakes that were made in 1930s. america must be strong. i want to show you something. this is all done for the good of our country. but this is why you have to understand it's a global issue. it's not america.
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barack obama, george bush, nobody can fix it with the old kind of thinking. no party. this is way beyond party. in the 1960s, we had mutually assured destruction. it was to stop us from bombing each other. okay? we were all afraid of nuclear war. we were afraid the missiles were going to come over the pole and kill us from russia and we're going to send our missiles over there and we'd vaporize each other. well carol quigley announced in his book, i think it was in 1962, the tragedy was global war. the hope was it will never happen again. because as he announced in his book, what they did is they tied all of our economies together. so now, if one country was destroyed or would destroy another, they a would all collapse. they'd all go down the toilet and so, they would have
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motivation to stop anybody. he said in 1962, you'll never see a world war again. you'll never see one country go in and obliterate another. i wo it won't happen. gee, think of all wars fought by us since 1962. is there any doubt in your mind that we could have finished in pakistan? we could have finished in iraq? had we unleashed the full might and power of the united states of america, ask yourself the question why didn't we? because we are all tied together economically. what happens right now and the president says oh, everything is fine. we're in the eye of the storm. it's a hurricane. we have been battered around. it's calm, but there is another wall of this storm coming and it's -- we're out on the open waters. it's still gathering strength. the weathermen are telling everybody oh, it's okay, go out. we have radar now. we can look at the numbers. you know, i painted these
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painting paintings and the one with george washington is hope. i put george washington here because he told the truth. he told the truth. the only way to have hope is to have the truth. if you go to a doctor and the doctor says to you, you've got cancer, you don't say to the doctor why are you engaging in the hate speech? why do you hate everybody like me? "i don't hate you. you have cancer. i'm trying to help you." no, no, no." there are too many people now in america that don't even understand the truth. it's been so long since they've heard the truth, they confuse it with hate. don't con fofuse the truth with hate. if you don't belief this doctor, go to another doctor, but finds one that engages in the truth. if they want to save your life, they'll tell you the same damn thing. correct diagnosis gives you a chance at survival. the same thing with our
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country. radical steps need to be taken but every day we deny that we have canccancer, it wil be harder and harder for us to cure. somebody said to me, i don't know, a few weeks ago. people respect going to do it. there will be civil unrest, because when they figure out that the treasury has been looted and there is a different future for their kids coming up, they are not going to sacrifice and they'll take the easy way. they won't give up entitlements. i think the greatest american generation is the one that is alive today. the one that just steps to the plate. the good news is we've done this before. after america's first bout with radical progressivism in the early 20th centucentury, we had chemotherapy and we rooted it out and we fixed it quickly. there are three ways to fix the mess we're in right now. three ways. first, you can cut spending. second, raise taxes.
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or three, print money, which is inflate the money. so far, we have done this one and this one. but instead of cutting spending, we've spent faster. how does that work? look, there is no difference between the government and your house. in your house if you were in the situation, what would you do? what would you do? you would get another job. that would be raise tax revenue. i'll explain the laffer curve with art laffer in a second. raise tax revenue. the second is cut spinding. these people aren't interested in raising tax revenue. they're into redistribution of wealth and fairness. we must cut spending. csignifican significant, massive budget cuts all across the board and we have to stop devaluing our dollar.
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some of the viewers may be thinking thank god this idiot is not president. he would destroy us. half of the audience is cheering. first of all, i'd like to hear a better answer. spending is not it. but for anyone who is cheering, i want to warn you, there is a good chance by the end of the week when you see just the beginning of one plan that has been laid out by cato, i have news for you. you are not going to be cheering. everyone is going to feel the pain on this one. the one thing said about socialism, everyone is against it until you get a hand-out. right now, 70% of america gets more money in benefits from the government than they pay in. that has got to stop. there cannot be any sacred cows. everything has to be on the table. not just the turtle tunnels or pills for grandma or bombs for defense, you name it and it has to be on the table. so all week we'll do the heavy lifting. we'll start to look at the
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budget and we'll look at it unlike anything i've ever seen before, in recent memory, at least by government. we'll look at the budget the way any sane person would. the way you would in your home. but first, i want to give you a little bit of hope. i have want to stop with a forgotten lesson in american history. we'll do that coming up. >> massive unemployment, expansion of government programs and sky-high tax rates. sound familiar? a look at the forgotten depression next. it's impossible to replace anybody that you love.
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she was my great role model, my grammy keaton. it was pretty much of a shock for us when she got colon cancer. we were -- none of us were prepared for that. here's the deal, and this is the bottom line here -- colorectal cancer is the second-leading cancer killer of men and women over the age of 50. and you know what -- this is one that you can prevent. just get screened, okay? i know how precious life is right now. we can all do this. you can do it, i can do it. if i can do it, you can do it, okay? how's that for a deal?
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>> glenn: there is going to be quite an amazing week as whether we decide if we're going to transform, into what, or restore. if we want to restore the country, it will take a lot of work. but the hope is we've done it before. it stands as one of america's greatest economic achievements. yet, there is a good chance you have never ever heard of it. reams have been written about the great depression and f.d.r. colossal government expanding new deal but you'd be hard pressed to find even a mention in most history books that we have in the classrooms about this amazing turn-around ten years prior.
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the year was 1920. the newly-elected warren g. harding was inheriting a mess from his predecessor woodrow wilson. the country was in a depression. with record unemployment, massive debt, and a bloated and inefficient federal government. it was as bad as anything in 1929 or 1930. they didn't use a stimulus package. or tax increases. what was the secret? how did we get out of it? watch this. >> the year was 1920. and america was in a crisis. soldiers had returned home from world war i, to find that their jobs were gone. unemployment doubled to nearly 12%. the stock market was on its way to losing half of its value. the gross national product was in freefall. outgoing president woodrow wilson's decision to involve
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america in world war i and his dyed in the wool progressive agenda left the country reeling. wilson had used the war effort to grossly expand an already bloated federal government. in an effort to reredistribute the wealth he raised income tax to 77%. the end result was a country deeply in debt with an economy on the verge of total collapse. this was the depression you probably never heard of. wiped clean from our history books. why? it's called the forgotten depression. more on that in a minute. ♪ another key factor in the economic nightmare was the action taken by the federal reserve. another wilson era progressive idea. as times got tougher in wilson's last term, the fed began to print money and make it easier to get credit. even as america's 29th
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president warren g. harding took oath of office in 1921, the country was on the brink. he waste nod tid no time. the plan was simple. no bail-out or stimulus package. it was the opposite. >> between 1920-'22, the federal budget was cut roughly in half. they cut top marginal income tax rates and marginal income tax rates for all groups substantially throughout the '20s. after they cut marginal tax rates so substantially, they were also able to cut the national debt, not the deficit, the national debt by one-third in the 1920s. >> the budget was cut in half. tax rates reduced in all income brackets. the national debt reduced by one-third. in 18 months, america rebounded. the result: the roaring '20s. ♪ ♪ >> it was during the 1920s
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that millions of americans bought their first radio. millions of americans bought their first refrigerator, their first car. the number of americans who had telephone doubled. >> president harding died of a heart attack two years in his presidency, but his successor calvin coolidge continued what he started. >> i want the people of america to be able to work less for the government and more for themselves. i want them to have the rewards of their own industry. this is the chief meaning of freedom. >> limited government, and free enterprise fueled one of the greatest success stories in american history. again, you probably never heard of this. >> we never hear a thing about the depression of 1920, for obvious reasons, because we might draw the wrong conclusions. we might conclude that maybe these policies could be implemented today. we're not allowed to draw the conclusion so this episode is
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simply left off the table. >> what the history books can't deny, just nine years later in spite of all the country had been through, progressive presidents, herbert hoover, f.d.r., following woodrow wilson of bloated government, massive spending and sky-high taxes led us back to the brink the great depressidepression. by the way, in another undeniable example of progressive revisionist history, yyou, me, our kids all were taught the new deal by f.d.r. proved to be the salvation of america. nothing could be further from the truth. the new deal expanded government to level approaching dictatorship. taxes reached obscene levels and era of government entitlement, many of which are still choking our economy today, was born. new deal prolonged the great depression in america, as other countries around the world rebounded years
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earlier, america suffered through a full decade of hardship. yet, unexplainable, that model is the ones by our leaders suffered by crisis brought on by progressive leadership. the forgotten depression forgot no more. to know where you are, you have to know your history, where we've been. we'll be able to see the future. get the history you never learned. we have produced a couple of documentaries for the website at the full story on the forgotten depressi depression ah on documentary form, insider extreme only to subscribers. check out the many documentaries on depression, the forgotten depression and doomed to repeat. it will blow your mind. check it out now. right back in a minute. h
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i'm patti ann browne. a milestone for the u.s. economy. the dow closing above 11,000 for the first time in a year-and-a-half. after the market gained nine points today. easing concerns over greece's debt and corporate takeover announcements nunl nudged stoc higher. china is agreeing to increase pressure on iran over the nuclear program. at the meeting on the sideline of nuke summit in
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washington, president hu jintao told president obama he shares their concern over tehran ambition. and new reports today that president obama is considering federal appeals court judge sydney thomas of montana for the u.s. supreme court to fill the seat of outgoing justice john paul stevens. glenn beck returns in a moment. but first, bret previews "special report." >> bret: coming up, how much really will come out of the nuclear summit in d.c.? and will the president be able to sway china and russia to sign on sanctions against iran? brit hume this hour, join me at the top of the hour for "special report" now. back to glenn. ♪ ♪ >> glenn: hello, america. this week we have a special series for five days. everybody always says oh, just tell me the truth. okay, we'll tell you the truth. now the question is: once you have the truth, what will you do with it? will you make the tough
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decisions? america is the patient. the patient has cancer. when cancer is diagnosed, the doctor doesn't prescribe an aspirin and 24 hours of bed re rest. if the patient got cancer from smoking they don't try to cure cancer with more cigarettes. nothing small is going to fix this. if it sounds too good to be true, it is. our country is being transformed, but into what? what are we changing into? this week i'll show a path to restoration, but it's a path that is drastic. we are all going to feel the pain of treatment, but if we do what we did in 1920, it won't last long. it will hurt, but it won't last long and it will save the patient. the number one question or criticism we get is you're just the party of no. you don't agree with barack obama. it amazes me. does anybody notice when george bush said when we were hit by people who flew planes
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in building, you're either with them or you're with us. everybody went crazy in the liberal world. does anybody notice that's what this president says to americans who respe aren't flyi planes into buildings? that you're either with us or the tea parpartiers. what? wom well, we contacted the cato institute, and with people joining thus week, from freakonomics, david butner we will tell you how to slash the budget. we have a marketing expert later to learn how to sell the message to american people. ben sherwood will be here later this week to help us weather the storm if we do this. what should you prepare for we do it or we don't? remember, this is only one idea to soften the ground. america has to talk about dramatic moves. i talked to this guy today on my radio program, paul ryan, a congressman from the land
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of progressives. he's got a plan out, too. i have to tell you. he calls it roadmap for america's future. i don't know how i've never met the guy and why we're not on each other's radar. he sounds like he gets it. look at his website. you have an idea, great. let's talk about it but can we start to have the discussion? i know before the reagan tax cuts the economy was choking on high inflation, high interest rate and high employment. then along came a doctor, dr. art laffer and the laffer curve. it sounds like something you'd see at a comedy club like milk through your nose but it's not. the laffer curves sets optimal income tax level to maximize tax revenue. hi, how are you? >> good to see you, glenn. >> glenn: show me the laffer curve here. we're not talking about raising taxes.
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this is tax revenrevenues. we don't need to raise taxes but raise tax revenue. we need more dollars in. >> right. >> glenn: explain this. >> these are tax rates here. tax rates on this level. this is tax revenues down here. tax revenues. and the thing is fairly simple. if i taxed you at 120% of everything you earned so every time you came in the studio instead of a check you got a bill. how much would you work? >> glenn: i wouldn't work at all. >> it's zero if you get nothing. zero output at 100% tax rate and therefore zero revenue. obviously, the zero tax rate you have lots of output, but there is no taxes so you have zero revenue. as you raise the tax rate, you can see the revenue starts rising because even though there is a little less output you will be taxing at more rates and likewise if you start lower tax rates here, people will start coming back to work and there will be revenue. this maps out the relationship between tax rates and tax revenues.
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this range here is the prohibitive range. here, if you raise tax rates you get less money. in my view and a number of the taxes we face in the u.s. we are literal literally -->> we're talking today, there is a study out. 77% income tax. that's what they're talking about. >> that would clearly be in this range, especially on upper income people. the more you raise their tax rates they move abroad, they shift the types of income they get, they go out of business, they defer the income. they do all sorts of stuff. you just aren't going to get their money. you just plain art. if you raise the tax rates on the rich, i will guarantee you will get less revenue. >> glenn: isn't there something -- i saw something about five years ago. it saw a chart that shows that it doesn't matter what you do to tax rate. we get 18%. >> it's a line that no matter what taxes you get 1%. >> shoot it full of holes. >> it's not. it's right. >> glenn: how come we don't talk about that?
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>> we talk about it all the time. >> you talk about it. how come, i mean, because -- >> it doesn't if it their ideology to be honest with you. they want to claim they can get the money they need from the rich people, from the top 1%, but they can't. they only get it from this group of people. when you raise the lowest tax rates up, you will get more money. the boss on the construction site can't defer his income and he can't change the form of his income. he can't change the location. >> glenn: is that why we went out -- because the first thing barack obama said after saying you won't get your taxes raised by a dime, not one penny under $250,000. first thing he did is go after smokers. >> they are easy to get because they're hooked. they can't change their behavior, they're addicted. same on this end, they don't have the opportunities that the other people do. >> glenn: but didn't reagan close all the loopholes for these people? 77% we had before. we had them with tons of
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loopholes. there is no loopholes now. you pay it. >> you pay the broadest rate. >> glenn: you don't want to pay 77%. that's obscene. >> that is ridiculous. we lowered the rate to 28%. >> glenn: what could we operate on? what could the government really truly operate on that should be shocking enough to -- did you see this? >> i did. >> glenn: this was mutumutually assured destruction but they tied all the economies together. we to spit ourself out of the system because all of the economies will go down, sdmrekt>> yes. i agree. >> glenn: what could we -- i'm getting a wrap sign. what could we get a flat tax down to and survive that would be something shocking to the rest of the world to spit us out of this? >> 11% of business net sales and 11% on personal unadjusted growth income and we would match the t tote
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elrevenue with no laffer curve. >> glenn: where does it start? >> zero. >> everyone pays 11% across the board. >> fica, everything. >> everything. estate tax, fica, medicare, medicaid. >> glenn: one tax. >> one tax. >> glenn: what did you make this year? deduct 11%. that's it. >> businesses do the same 11% on the value-added. you have two 11%ers. jerry brown ran on this as a presidential candidate in 1992 and almost took clin top out. the democrats love this. his number was 31% because he wanted a surplus to pay off the debt. >> glenn: have a seat. thank you. more with art laffer. we'll bring in chris edwards, he's the director of tax policy studies at the cato institute. we'll look at the budget and show what is coming this week, next.
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>> glenn: we have art laffer with us today and chris edwards is here, the director of tax policy studies at cato institute and the author of "downsizing the federal government." is this your website, too? >> >> glenn: a great website. >> thank you. >> glenn: i didn't know it was yours. great website. in this, so you know, this week we're going to spend some time talking one topic. making sure the mutually assured economic destruction doesn't happen. and as all the globe starts to come down and reboot, we want to be a place where everybody rushes and pours their money from the rest of the world. we can be the safe haven. we can turn it around quickly. we just have to be sensible. in your book, you talk about the taxes. and they all seem to be the former soviet union countries
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that all have flat taxes now. >> we talked about flat taxes, folks like art and i say it's unrealistic but the reality is there are 25 countries around the world that adopted flat taxes. the average rate is 17%. countries like russia have done fantastic under a flat tax. >> glenn: didn't georgia get into a flat tax war with russia? russia was trying to put georgia -- punish them, so they had a flat tax and they kept dropping it and georgia won. >> right. all the european countries are competing to lower the rate. slovakia cut the flat tax rate to 19%. german corporations like the car companies moved to slov slovak slovakia. >> glenn: we're talking now about a v.a.t. which would be crippling on top of everything else. would it not? >> it would be. >> the average v.a.t. rate in europe is 28%. every time you go to a car or buy furniture, 20% federal
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sales tax. >> that's federal. you have state and local as well. >> right. >> glenn: who are the economists, i just can't imagine that people actually think these things would work. >> some economists belief if more resources are channeled through the government, somehow it helps society. it profoundly damages society as we found over and over. >> glenn: if they push these things through, they keep spending like this, they do a global carbon tax. we have to pay for the healthcare bill now. all of the things, how much time -- you're a sunny, optimistic guy. how long do you think we have? >> it's spiraling out of control and obama plans to run trillion-dollar deficits as far as the eye can see. you can't do that. federal interest cost accelerate faster and faster. under obama's current budget we would pay $280 billion a
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year in interest and he admits it willadmit s it will go to $800 billion, quadruple. >> unfunded liabilities which are enormous. >> glenn: we'll go into that in a second. we're showing you what is coming this week. we'll be right back. w
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>> glenn: all this week, we're going to tackle the federal budget. back with me now, chris edwards of the cato institute, art laffer former reagan economic advisor. we only have a few seconds here so i want to go over this. correct me where i'm wrong. the problem we have right now is from here to here, nothing can be touched. correct? >> no. we can reform entitlements. we have to. >> glenn: yes, we have to. but generally speaking you need an act of congress -- >> it's much more difficult. >> and this at 7%, we are currently at the lowest interest rate we had. >> even obama says it's going up 15%. so it's doubling in size in ten years under obama. >> glenn: so we are here, in ten years, without even the interest rate going up. >> right. >> glenn: we're up to here. the interest rate if they were as high when you got into office with ronald reagan, it would probably be this much. >> it would go up if we had 10% interest rate, it would
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go up to 30%. one-third of the budget will be interest. >> when we came in office, the prime interest rate was 21.5%. i know you don't remember because you're so young. 21.5%. can you imagine the u.s. economy? it would be around this twice. >> oh, gosh. [ laughter ] >> glenn: we'll be back in just a second. ç
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>> glenn: tomorrow, we roll up our sleeves and begin. we cut healthcare. right now medicaid and medicare are 40% of the budget. they're going away. it will be ugly, a lot of crying but america needs a cure. don't confuse the truth with hatred. by the way, use truth as your anvil, as gandhi said. non-violence as your hammer. anything that doesn't stand the test, when brought to the anvil of truth and hammered with non-violence, reject it. see you

Glenn Beck
FOX News April 12, 2010 5:00pm-6:00pm EDT

News/Business. Guests discuss the day's top political, entertainment and business stories. New.

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